Chapter Fifteen: Advertising, Sales Promotions and Personal Selling Concept Review Generally, the concept questions are designed to achieve a single purpose – to encourage students to test their knowledge and understanding of the theoretical content of the chapter. These questions encourage recall and reflection, which will better prepare students to answer the marketing applications questions based on their understanding of the theory. 1. What is advertising? Advertising is a paid form of communication, delivered through media from an identifiable source, designed to persuade the receiver to take some action. Advertising has three important distinctions over other IMC tools. First, unlike public relations, advertising is not free. Second, advertising must be carried by some medium such as television, radio, print or the web. Lastly, the source of the message must be known or knowable. 2. What is the AIDA Model? How does the AIDA model facilitate the planning and execution of marketing communications? The AIDA Model refers to the series of mental stages, or steps, that marketing communications move consumers through. These stages include Attention, Interest, Desire and Action. At each stage, consumers make judgements about whether to move forward to the next step. Also known as the “think, feel, do” model, it helps facilitate the planning and execution of marketing communications since marketers must think about and deal with hurdles in each stage of the model. 3. What are the three primary objectives of advertising? The three primary objectives are informative, persuasive and reminder advertising. Informative advertising is used to create and build brand awareness and eventually move consumers through the buying process to purchase. Persuasive advertising motivates consumers to take action and is generally used in the growth and maturity stage of the product life cycle. Reminder advertising helps prompt consumers to repurchase products or services and is particularly useful in the maturity stage of the product life cycle. 4. List and explain some of the potential regulatory and ethical issues firms should consider when developing their marketing communications strategy. Legal and ethical issues include consideration for: misleading and deceptive advertising practices, e.g. bait and switch tactics unsafe or misbranded products, e.g. unsafe food, drugs, cosmetics overstated health claims, e.g. diet-related claims or drug claims to reduce heart disease, high blood pressure, cancer, etc. bilingual labelling for all pre-packaged products adhering to the Broadcast Code for Advertising to Children, and in Quebec avoiding advertising to children under the age of 13 ethics of spending large amounts of money on advertising 5. What is sales promotion? What are the main objectives of sales promotion? Sales promotions are special incentives or excitement-building programs that encourage consumers to purchase a particular product or service. The main objectives of sales promotion are to build short-term sales and drive purchase. 6. List six different kinds of consumer sales promotion tactics and discuss the advantages and disadvantages of each. PROMOTION ADVANTAGES DISADVANTAGES Coupons • Encourages retailer support. • Allows for direct tracing of sales. • Has low redemption rates. • Has high cost. Deals • Reduces consumer risk. • Retaliates against competitive action. • May reduce perception of value. Premiums • Increases perception of value. • Consumers buy for premium not product. • Has to be carefully managed. Contests • Generates excitement. • Requires creativity. • Must be monitored. Sweepstakes • Minimises brand switching among existing consumers. • Sales often decline after. Samples • Offers direct involvement. • Has high cost to the firm. Loyalty Programs • Creates loyalty. • Has high cost to the firm. POP Displays • Provides high visibility. • Provides in-store support. • Is difficult to get a good location in the store. • Can be costly to the firm. Rebates • Increases value perception. • Is easily copied by competitors. • May just advance future sales. Product Placement • Displays products nontraditionally. • Introduces new products. • Firm often has little control over display. • Product can be overshadowed. 7. Describe the different kinds of sales promotion targeted to distribution channel members. Why are these trade channel promotions necessary? Are they ethical? Discounts and Allowances - case allowance or discount off each case for ordering a certain quantity Co-operative Advertising - compensates channel members for money spent on promoting products Salesforce Training – retailer’s sales staff offer training to ensure they have in-depth product knowledge All are necessary to incentivise retailers to buy and promote products in their stores and are ethical provided they do not violate Competition Bureau regulations. What is personal selling? Describe the steps in the personal selling process. Which stage do you consider to be the most important and why? Personal selling is the two-way flow of communication between a buyer or buyers and a seller designed to influence the buyer’s purchase decision. There are five steps in the personal selling process: Generate and qualify leads – create a list of potential customers and qualify them (assess their potential) Preapproach – conduct additional research about a customer and develop a plan for meeting with that customer Sales Presentation and Overcoming Objections – in-person meeting where the sales person determines where the customer is in the buying process, asks and answers questions, and overcomes objections Closing the Sale – the sales person must ask for the business and close the deal Follow-up – ensure the customer is satisfied and continue to build an ongoing relationship All stages are important. Without qualified leads, sales reps waste their time calling on customers. Not spending enough time “doing their homework” in the preapproach stage will result in sales reps who don’t understand the customer’s needs and/or industry. During the sales presentation, if sales reps don’t listen well, ask good questions and carefully respond to objections, they will be unable to close the sale. Ongoing relationships can only be built by following up and delivering great service quality. What is sales management? Why sales management is considered a complicated task? Sales management involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force. It is complicated because it involves determining whether to hire your own sales force or contract with independent agents, recruiting people with appropriate personal traits and abilities, training these people which can be quite expensive, motivating the sales force to perform and determining the best compensation model, and putting measures in place to evaluate their results. What are the main considerations involved in recruiting, training, and compensating salespeople? Recruiting: to hire the right person, a company must determine what the sales person’s duties will be and what skills and abilities are required to accomplish these duties. Manager and sales experts agree that personality, optimism, resilience, self-motivation and empathy are key traits for success. Training: Companies can choose on-the-job training or role-playing exercises which allow managers to observe trainees and provide feedback, however take time and are expensive. Online training or teleconferencing are less expensive and can still be quite efficient. Compensating: Not all sales reps are motivated purely by money. Some prefer autonomy over high monetary compensation. Managers need to decide whether to use financial rewards such as salary, commission, bonuses and contests or non-financial rewards such as recognition, trips, or time off. Marketing Applications Choose one of the ads featured in this book and identify its page number. What are the objectives of this ad? Does the ad have more than one objective? Explain your answer. One of the ads featured in the book "Marketing" is for
. While I can't provide a specific page number, the objectives of this ad can be inferred from typical marketing objectives. The primary objective of this ad is likely to increase brand awareness and generate interest in the product/service among the target audience. Through compelling visuals, catchy slogans, and persuasive messaging, the ad aims to capture the attention of potential customers and make them aware of the existence and benefits of the product/service. Additionally, the ad may have secondary objectives such as promoting a specific product feature, encouraging trial or purchase, or building emotional connections with the audience. These objectives complement the primary goal of brand awareness by providing further incentives for consumers to engage with the product/service. In conclusion, while the primary objective of the ad is to increase brand awareness and generate interest, it may also have secondary objectives aimed at driving specific actions or building deeper connections with the audience. Feel free to adjust the answer according to the specific ad and objectives mentioned in the book! Instructor’s Notes: Students may select any ad they want, but to determine its possible objectives, they should discuss the product promotion, increased store traffic, entertainment tie-in, event sponsorship, or some form of sales promotion. Example answers: The Burger King ad in this chapter attempts to promote the chain’s food items, get consumers excited about the Star Wars product tie-ins available when a consumer purchases a meal (which helps bring consumers into the stores), and show the company’s sponsorship of events like the “Kings of the Court” basketball competition. Using the steps in the AIDA model, explain why a potential consumer who views Juicy Couture’s advertising may not be ready to go out and purchase a new pair of jeans. Let's break it down using the AIDA model, which stands for Attention, Interest, Desire, and Action: Attention: Juicy Couture's advertising grabs the potential consumer's attention through various means like vibrant visuals, catchy slogans, or celebrity endorsements. However, grabbing attention doesn't necessarily mean the consumer is immediately interested in purchasing. Interest: Even if the consumer is intrigued by the advertisement, they may not necessarily be interested in purchasing a new pair of jeans from Juicy Couture. Perhaps they already have jeans they're satisfied with, or they're not in the market for clothing at the moment. Desire: This step is crucial. The advertisement may create a desire for the product by showcasing its unique features, quality, or how it can fulfill a need or desire the consumer has. However, desire doesn't always translate into immediate action. The consumer might desire the jeans but may not feel the urgency to purchase them right away. Action: Finally, even if the potential consumer is aware of Juicy Couture's jeans, interested in them, and desires to own a pair, they may not be ready to take action and make a purchase. Factors like budget constraints, other priorities, or needing more time to consider the purchase could delay the action phase. So, while Juicy Couture's advertising may effectively capture attention and even generate interest and desire for their jeans, the consumer might not be ready to take the final step of purchasing due to various reasons, thus not immediately converting into a customer. Instructor’s Notes: The AIDA model suggests that attention leads to interest, which leads to desire, which leads to action. At each stage, the consumer judges whether to take the next step. Students should take the perspective of a potential consumer and proceed through the scenario presented in the previous question. Example answers: To get consumers to go out and purchase its product, Juicy Couture must deal with hurdles in each stage of the AIDA model: Attention: Even though a consumer might see the company’s advertisement, it might not catch her attention. Interest: Once the consumer is aware that the company and product exist, she still might not believe it is worth investigating further. Desire: The consumer might like the product but need further convincing that she wants it. Action: If the consumer has interest and desire, it still might take several more exposures to the advertisement to prompt her to take action and make the purchase. Suppose Lexus is introducing a new line of light trucks and has already created the advertising campaign. How would you assess the effectiveness of the campaign? Assessing the effectiveness of an advertising campaign for Lexus's new line of light trucks involves several key steps: Define Objectives: Understand the goals of the advertising campaign. Is it to increase brand awareness, generate leads, or drive sales? Target Audience Analysis: Evaluate whether the campaign effectively reaches and resonates with the intended audience for Lexus's new line of light trucks. This may involve demographic analysis, consumer surveys, or focus groups. Message and Creative Evaluation: Review the messaging and creative elements of the campaign to determine if they effectively communicate the unique selling points and benefits of the new light trucks. Assess the clarity, relevance, and memorability of the message. Media Reach and Frequency: Analyze the reach and frequency of the campaign across various media channels (e.g., TV, digital, print). Consider whether the campaign is reaching the target audience with sufficient frequency to make an impact. Brand Perception and Image: Measure any changes in brand perception and image resulting from the campaign. Has it enhanced Lexus's reputation as a maker of high-quality vehicles, particularly in the light truck segment? Engagement Metrics: Track engagement metrics such as website visits, social media interactions, and ad click-through rates to gauge audience interest and response to the campaign. Sales and Conversion Data: Ultimately, the effectiveness of the campaign should be measured by its impact on sales and conversions. Analyze sales data to determine if there has been an increase in inquiries, test drives, and purchases of Lexus's new light trucks since the campaign launched. Return on Investment (ROI): Calculate the ROI of the campaign by comparing the cost of advertising to the revenue generated from increased sales. Determine whether the campaign has delivered a positive return on investment for Lexus. By systematically evaluating these factors, Lexus can determine the overall effectiveness of its advertising campaign for the new line of light trucks and identify any areas for improvement in future marketing efforts. Instructor’s Notes: Rather than designing a campaign, students must assess the existing efforts of a company like Lexus. To test its effectiveness, students must assess the campaign before (pretesting), during (tracking), and after (posttesting) it has run. Example answers: To determine the effectiveness of Lexus’s new advertising campaign, I would use pretesting to ensure that the various elements work in an integrated fashion and are doing what they are intended to do. Once the advertisement is in circulation or on the air, I would track key performance indicators, such as daily or weekly sales volume, to identify any problems with the message or the medium. After the campaign has stopped running, I would use posttesting to evaluate its impact on the target audience and the firm’s brand image and sales. Suppose now that Lexus is planning a sales promotion campaign to augment its advertising campaign for the new line of light trucks. Which push and pull sales promotion tools do you believe would be most effective? Why? For Lexus's sales promotion campaign for its new line of light trucks, a combination of push and pull sales promotion tools can be effective in reaching both retailers and consumers. Here's how each type of promotion can be utilized: Push Sales Promotion Tools: Trade Show Promotions: Participating in auto shows or industry trade shows where Lexus can showcase its new line of light trucks to potential retailers and distributors. This allows Lexus to directly reach out to retailers and persuade them to carry their products. Trade Allowances: Offering incentives such as discounts or rebates to retailers for stocking and promoting Lexus light trucks in their stores. This motivates retailers to push the product onto consumers by offering them better deals. Sales Force Promotions: Providing sales representatives with incentives or bonuses for achieving sales targets or securing shelf space for Lexus light trucks in retail outlets. This encourages the sales team to actively promote the product to retailers. Pull Sales Promotion Tools: Advertising: Leveraging advertising channels such as TV, print, digital, and social media to create brand awareness and generate consumer interest in Lexus light trucks. This creates demand among consumers, prompting them to inquire about or seek out the product at retailers. Consumer Promotions: Offering consumer incentives such as discounts, limited-time offers, or free accessories with the purchase of a Lexus light truck. This incentivizes consumers to make a purchase decision and drives them towards Lexus dealerships. Public Relations: Generating positive publicity through media coverage, reviews, and endorsements to enhance the perceived value and desirability of Lexus light trucks among consumers. This builds trust and credibility, ultimately pulling consumers towards the product. Combining these push and pull sales promotion tools creates a comprehensive marketing strategy that targets both retailers and consumers, effectively increasing visibility, demand, and sales for Lexus's new line of light trucks. Instructor’s Notes: Continuing the Lexus scenario, students should determine which type(s) of sales promotion might be more beneficial in conjunction with its advertising campaign—coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, POP displays, rebates, or product placements. Example answers: Because of the high-income target consumer segment and the brand image of Lexus, the company should consider using a combination of product placement and premiums. Product placement in a television show or movie that is popular with the target consumer segment could make consumers more aware and interested in the vehicle, especially if an ideal character appears driving the new Lexus. A premium could reinforce the brand image as being one of refined quality, even for a light truck, such as a gourmet picnic basket. How would the Lexus sales promotion differ if it was geared to a business organisation with a fleet of company owned trucks? Promoting Lexus vehicles to a business organization with a fleet of company-owned trucks would necessitate a tailored approach to highlight the benefits and value proposition specific to their needs. Here's how the sales promotion might differ: Fleet Discounts: Rather than individual consumer incentives, the focus would shift towards offering bulk discounts or special fleet pricing. This could include volume-based pricing structures or loyalty programs for purchasing multiple vehicles. Customization Options: Highlighting the versatility of Lexus models for various business needs, such as customization options for utility, branding, or specific industry requirements. This might involve showcasing available modifications like custom shelving, storage solutions, or vehicle wraps tailored to the company's branding. Total Cost of Ownership: Emphasizing the long-term cost benefits of Lexus vehicles in terms of fuel efficiency, maintenance, and durability. Providing data and case studies demonstrating reduced total cost of ownership over the lifespan of the fleet compared to competitors. Fleet Management Solutions: Offering integrated fleet management solutions or partnerships to streamline maintenance, tracking, and scheduling for the company's vehicle fleet. This could involve partnerships with fleet management software providers or offering specialized maintenance packages. After-Sales Support: Highlighting the availability of dedicated business support teams or specialized service centers equipped to handle fleet maintenance and repairs efficiently. Providing assurances of minimal downtime and rapid response times for servicing needs. Safety and Reliability: Emphasizing the safety features and reliability of Lexus vehicles as crucial factors for maintaining operational efficiency and ensuring the safety of drivers and cargo. This could include showcasing advanced safety technology, crash test ratings, and reliability data. Tax Incentives and Depreciation: Educating business owners about potential tax incentives or depreciation benefits associated with purchasing vehicles for business use. Providing resources or partnering with tax advisors to help navigate these financial considerations. Demonstrations and Test Drives: Offering on-site demonstrations or test drive opportunities tailored to the needs of fleet managers or key decision-makers within the organization. This could involve bringing vehicles directly to the company's location for convenient evaluation. Environmental Impact: Highlighting Lexus' commitment to sustainability and offering hybrid or electric vehicle options for businesses looking to reduce their carbon footprint or comply with environmental regulations. Partnerships and Alliances: Forming strategic partnerships with other businesses or industry associations relevant to the target organization to enhance credibility and reach. This could involve joint promotional campaigns, co-branded initiatives, or referral programs. By focusing on these aspects relevant to a business organization with a fleet of company-owned trucks, the sales promotion can effectively address their specific needs and priorities, ultimately driving greater interest and engagement in Lexus vehicles. Instructor’s Notes: Students should recognize that sales promotions designed to attract businesses need to be different from consumer sales promotions. They should determine that is this case, deals and loyalty programs are the most appropriate. Example answers: Since Lexus is selling to businesses who want to buy a fleet of company owned trucks, it would be inappropriate to consider coupons, premiums, contests, sweepstakes, samples, point of purchase displays, rebates or product placement. Lexus should choose either deals or loyalty programs. An example of a deal might be a short-term price reduction or special financing rate to encourage businesses to purchase within a specified timeframe. A loyalty program offering incentives to businesses that make multiple purchases over a long period of time could help retain customers. Choose an ad that you believe unreasonably overstates what the product or service can do. (If you can’t think of a real ad, make one up.) Explain whether the ad is actually deceptive or just puffery. How would your answer change if you lived in France? One example of an ad that unreasonably overstates what the product can do is: "Miracle Weight Loss Pill: Lose 20 pounds in 7 days guaranteed! No exercise or dieting needed!" This ad is deceptive because it promises an unrealistic and potentially dangerous outcome – losing 20 pounds in just 7 days without any effort or lifestyle changes. In reality, such rapid weight loss without proper diet and exercise can be harmful to one's health and is generally not achievable in a safe or sustainable manner. In the context of advertising regulations in the United States, this ad would likely be considered deceptive and could face legal consequences. The Federal Trade Commission (FTC) regulates advertising practices in the U.S. and prohibits false or misleading claims about products or services. If we were to consider the perspective of living in France, the approach to regulating advertising claims might differ. France has strict regulations concerning advertising content, particularly regarding health-related claims. French law prohibits deceptive advertising, similar to the U.S., but it also places a high emphasis on protecting consumers from misleading information, especially in sensitive areas like health and weight loss. In France, this ad would likely face scrutiny from regulatory bodies such as the Autorité de régulation professionnelle de la publicité (ARPP) and could be deemed deceptive under French law. France tends to have a lower tolerance for exaggerated claims or "puffery" in advertising compared to some other countries, so even if the ad didn't explicitly state false information, its exaggerated promises could still be considered deceptive. Instructor’s Notes: Student must determine for themselves to what degree advertisements might be classified as deceptive. They must note that, regardless of their answer for themselves, the ad would be illegal in the EU, including France. Example answers: Advertisements for Bowflex unreasonably overstate what the product can do for consumers. Although they might come close to deception, they seem like a better example of puffery. Some people legitimately might use the weight machine to get slimmer and add muscle, but their results are probably unusual and may be due to other factors, such as restricted diets or personal trainers. The advertisement suggests consumers can “Get the results you want in only 20 minutes a day, 3 days a week,” which reasonable people should recognize is impossible. However, if the advertisement aired in France, it would definitely be considered deceptive, because scientific evidence would not support the claim and it therefore sends a false impression to consumers. 7. You are invited to your 6-year-old niece’s birthday party and bring her a new superhero doll being advertised on television. She’s thrilled when she unwraps the gift but is in tears a short time later because her new doll is broken. She explains that on TV, the doll flies and does karate kicks, but when she tried to play with the doll this way, it broke. You decide to call the manufacturer, and a representative tells you he is sorry your niece is so upset but that the ad clearly states the doll does not fly. The next time you see the televised ad, you notice very small print at the bottom that states the doll does not fly. You decide to write a letter to the Advertising Standards Council (ASC) about this practice. What information should you include in your letter? Subject: Complaint Regarding Misleading Advertising Practices Dear Advertising Standards Council, I am writing to express my concern regarding a recent experience with a toy manufacturer's advertising practices that I believe are misleading and potentially harmful to consumers, particularly children. The advertisement in question pertains to a superhero doll marketed towards children, which prominently features the doll flying and performing karate kicks. Recently, I purchased this doll as a birthday gift for my 6-year-old niece, who was thrilled upon unwrapping it. However, her excitement quickly turned to disappointment and tears when the doll broke while attempting to play with it as depicted in the advertisement. Upon further investigation, I discovered that the advertisement does include a disclaimer in very small print at the bottom, stating that the doll does not actually fly. However, this disclaimer is easily overlooked, especially by young children who are the primary target audience for such products. I believe that this advertising practice is deceptive and unfair to consumers. By prominently featuring actions that the doll cannot actually perform without clearly indicating that these actions are not possible, the manufacturer is setting unrealistic expectations and potentially leading to disappointment and frustration among young children. Furthermore, such misleading advertising practices can also have broader implications for child development and safety. Children may attempt to imitate the actions they see in advertisements, leading to potential injury or harm if the product does not function as expected. Therefore, I urge the Advertising Standards Council to investigate this matter and take appropriate action to ensure that advertising practices adhere to ethical standards and do not mislead consumers, especially when children are involved. Specifically, I recommend that the ASC consider implementing stricter guidelines for advertising aimed at children, including clearer and more prominent disclaimers for products that do not perform as depicted in advertisements. Thank you for your attention to this matter. I trust that the Advertising Standards Council will take appropriate action to address this issue and prevent similar incidents from occurring in the future. Sincerely, [Your Name] Instructor’s Notes: While students might refer to the federal Competition Bureau, which enforces laws that relate to misleading advertising and deceptive marketing practices, the ASC is a self-regulatory body that monitors voluntary industry codes. Advertising to children is primarily regulated by the ASC’s Broadcast Code for Advertising to Children. Students should list the type of information the agency might need if it were to follow up on a claim of deceptive advertising. Example answers: I would include the name of the product being advertised; the nature of the advertisement, including the deceptive impression made by the animation; and the fact that the fine print is so small—and largely lost on children anyway—that consumers may believe that the product is capable of more than it is actually is. 8. “Salespeople just make products cost more.” Agree or disagree with this statement and discuss why you’ve taken that position. I disagree with the statement "Salespeople just make products cost more." While it might seem like salespeople add an additional layer of cost, their role in the sales process is crucial and goes beyond simply increasing the price of a product. Firstly, salespeople often play a vital role in educating customers about the features and benefits of a product. They provide valuable information that helps customers make informed purchasing decisions. This education can lead to customers choosing products that best suit their needs, potentially saving them money in the long run by avoiding unnecessary purchases or selecting products with higher value. Secondly, salespeople can add value through their ability to negotiate and customize deals. They can work with customers to tailor solutions that meet specific requirements, which can result in a better fit and potentially lower overall costs for the customer. Effective negotiation can also lead to discounts or special offers that reduce the cost of the product. Additionally, salespeople often provide post-sales support and service, ensuring that customers are satisfied with their purchase. This level of support can enhance the overall customer experience and increase the perceived value of the product, mitigating any concerns about the initial cost. Furthermore, salespeople are instrumental in building relationships with customers. These relationships can lead to repeat business and referrals, which are invaluable for the long-term success of a company. By fostering trust and loyalty, salespeople contribute to the sustainability of the business and help generate future revenue streams. In conclusion, while it may appear that salespeople increase the cost of products, their role is multifaceted and extends beyond pricing. They provide education, customization, support, and relationship-building, all of which contribute to the overall value proposition for customers. Therefore, dismissing salespeople as mere cost drivers overlooks the significant value they bring to the sales process and the customer experience. Instructor’s Notes: This question challenges students to consider the degree to which they think salespeople provide enough value to justify their costs. Depending on the types of products or services students considers, they might agree or disagree; for standardized, commodity-like products, they might believe salespeople do not add that much value, but for unique, big-ticket, or complex items, they should argue that salespeople provide value by educating and guiding the consumer. Example answers: In many situations, salespeople provide a valuable function for both the business and the consumer. On the business side, they help get the word out about the company and its products in a very face-to-face, human way. On the consumer side, they educate consumers about the product or service and help them make the best possible choices based on the consumers’ individual circumstances. For commodity products, salespeople might not add much value, but for products that are complicated or new, they translate value from the business to the consumer. 9. Choose an industry or a specific company that you would like to work for as a salesperson. How would you generate and qualify leads? Let's say I aspire to work in the technology industry, particularly for a company like Salesforce, a leading provider of customer relationship management (CRM) software. Here's how I would go about generating and qualifying leads: Research and Identify Target Market: Before diving into lead generation, it's crucial to understand the target market. I would research industries, businesses, and demographics that can benefit most from Salesforce's CRM solutions. This includes understanding their pain points, challenges, and needs. Utilize Social Media and Networking: I would leverage platforms like LinkedIn, Twitter, and relevant industry forums to connect with potential leads. Engaging in discussions, sharing valuable content, and participating in relevant groups can help in establishing credibility and expanding the network. Content Marketing: Content marketing is a powerful tool for attracting leads. Creating blog posts, whitepapers, case studies, and videos that address common pain points and provide solutions can attract prospects who are seeking information about CRM solutions. Attend Industry Events and Conferences: Participating in industry events, trade shows, and conferences provides an opportunity to meet potential leads face-to-face. I would ensure to network effectively, exchange contacts, and follow up promptly after the event. Utilize CRM Software: It's only fitting that I would utilize Salesforce's own CRM software to manage and track leads. By effectively using Salesforce's lead management features, I can categorize leads based on criteria such as industry, company size, and level of interest. Email Marketing Campaigns: Crafting personalized email campaigns tailored to specific segments of the target market can help in nurturing leads. Utilizing marketing automation tools within Salesforce can streamline the process and ensure timely follow-ups. Referral Programs: Encouraging satisfied customers to refer other businesses can be a highly effective way to generate qualified leads. Offering incentives or rewards for successful referrals can further incentivize customers to participate. Qualification Process: Not all leads are created equal. I would implement a lead qualification process to prioritize leads based on their likelihood to convert. This may involve assessing factors such as budget, authority, need, and timeline (BANT criteria). Continuous Evaluation and Optimization: Generating and qualifying leads is an ongoing process that requires constant evaluation and optimization. I would regularly analyze the effectiveness of different lead generation channels and strategies and make adjustments accordingly to ensure optimal results. By employing these strategies, I believe I could effectively generate and qualify leads for Salesforce, contributing to the company's sales success in the competitive technology industry. Instructor’s Notes: Even if they are not interested specifically in a sales career, students should provide a possible company and discuss their possible customers, as well as how they would assess the potential of those customers. Example answers: If I would like to work for a firm like IBM, particularly because it tends to focus on relationship building and selling. To generate and qualify leads, I might attend technology conferences and trade shows to network and meet potential clients. By talking to these clients, I could gather information about their current situation and possible IT needs. With that information, I could follow up with further research to discover more about that company’s size, strategic direction, profit levels, and any other information that might tell me whether it is a good prospect for a sales call. 10. You have taken a summer job in the windows and doors department of a large home improvement store. During your sales training, you learn about the products, how to address customers’ needs, why the lifetime value of the customer concept is so important to a store like this, and how sell the customer the best product to fit their needs, regardless of price point. One day, your manager informs you that you are to recommend Smith Windows to every window customer, even though these windows are more expensive and do not provide superior benefits except in limited circumstances. The manager is insistent that you recommend Smith. Not knowing what else to do, you recommend Smith Windows to customers who would have been better served by lower cost windows. The manager rewards you with a sales award. Later, the manager tells you that he received an all-expenses-paid cruise for his family from Smith Windows. What, if anything, should you do with this information? In this situation, it's important to consider the ethical implications of your actions. First, you should assess whether recommending Smith Windows to customers who would have been better served by lower-cost options aligns with your personal values and the principles of good customer service. If you believe that your actions were unethical or not in the best interest of the customers, you may want to consider addressing the situation. One option is to have a private conversation with your manager to express your concerns. You can explain why you feel uncomfortable recommending Smith Windows in situations where it may not be the best choice for the customer. It's possible that your manager may not have realized the impact of their directive or may be open to reconsidering their approach. If you're not comfortable discussing the issue directly with your manager, you could consider reporting the situation to a higher authority within the company, such as a regional manager or human resources department. They may be able to investigate the matter further and take appropriate action to ensure that customers are receiving honest and unbiased recommendations. As for the manager receiving an all-expenses-paid cruise from Smith Windows, it's important to remember that accepting gifts or incentives from suppliers can create conflicts of interest and undermine the integrity of the sales process. If you believe that the manager's acceptance of the cruise could be compromising the fairness and transparency of the sales practices in the department, you may want to consider bringing this information to the attention of higher management or the company's ethics committee. Ultimately, it's essential to prioritize honesty, integrity, and the best interests of the customers in any business situation. By addressing concerns about unethical behavior, you can help uphold these values and contribute to a more ethical and customer-focused work environment. Instructor’s Notes: This scenario forces students to question to what degree this situation might violate their ethical standards. Using the ethical decision-making framework, students can determine an appropriate course of action. Example answers: In applying the ethical decision-making framework: “Have you thought broadly of any ethical issues associated with the decision to be made?” The manager’s direction bothered me from the start, so I have thought about my concerns in terms of recommending an inferior product to my customers, which may negatively affect their opinion of my company. In addition, the manager appears to have taken a bribe and involved me in this unethical action by giving me an award for going along with it. “Have you involved as many possible people who might have a right to offer input into or have actual involvement in making this decision and action plan?” At this point, though other salespeople know about the manager’s direction to sell only Smith Windows, only I know that he received a cruise for doing so. Neither my company nor my customers know about the details. “Does this decision respect the rights and dignity of the stakeholders?” No, because I basically am being asked to lie to customers, and customers are getting lied to. “Does this decision produce the most good and the least harm to the relevant stakeholders?” This scheme harms almost all stakeholders except my manager. Customers pay too much for an inferior product, the company could suffer damage to its reputation, and as an employee, I have been put in a very awkward and uncomfortable position. “Does this decision uphold relevant conventional moral rules?” Conventional standards against bribery and lying suggest the community at large would absolutely not approve. More particularly, my company says it wants to offer customers the best value, so it also does not meet the specific standards demanded by this firm. “Can you live with this decision alternative?” The only alternative I can live with is to make sure the manager rectifies the situation and ensure it never happens again. Based on my answers, I would approach my manager with my concerns. If he does not agree to solve the problem, I would take my concerns to his manager so that the firm can determine whether such activity is endemic to the entire sales team or specific to this one manager. Net Savvy 1. Go to the website for Concerned Children’s Advertisers (www.cca-kids.ca/) an agency that produces and delivers social messaging campaigns on issues of challenge in children's lives. Click on the About Us tab and examine the history and activities of CCA. How does the role they play in responsible advertising complement the formal regulation of other agencies? Now look under the News tab. Choose one of the PSAs and discuss how these ads are used to deliver CCA’s message. Concerned Children’s Advertisers (CCA) is an organization in Canada dedicated to producing and delivering social messaging campaigns on issues affecting children's lives. They aim to promote responsible advertising directed towards children and youth. CCA's role in responsible advertising complements formal regulation by providing additional support and guidance to advertisers beyond what regulations mandate. While formal regulations set legal boundaries and standards for advertising, CCA focuses on promoting ethical and socially responsible advertising practices that go above and beyond legal requirements. This includes encouraging advertisers to consider the potential impact of their messages on children's well-being and to adopt best practices for creating ads that are age-appropriate, truthful, and respectful. Under the News tab on the CCA website, visitors can find various public service announcements (PSAs) that deliver CCA's messages on different issues affecting children. These PSAs are typically short video or audio clips designed to raise awareness and provoke thought or action on topics such as bullying, healthy eating, physical activity, and online safety. For example, one PSA might focus on promoting positive self-esteem and body image among young girls by challenging unrealistic beauty standards portrayed in media and advertising. Another PSA might address the importance of kindness and empathy in combating bullying behavior among children and youth. These ads are used strategically to reach target audiences through various media channels, including television, radio, social media, and online platforms. By leveraging the power of advertising and media, CCA aims to influence social norms and behaviors in ways that promote the well-being and positive development of children and youth. Instructor’s Notes: To help students understand what kind of groups exist for children’s advertising; this exercise encourages them to explore the website of one such group, CCA. Example answers: CCA’s mission involves working in partnership with government, educators, parents and other experts to be an authoritative voice of responsible children's advertising and communications in Canada. It produces public service announcements and delivers its message in classrooms and community centres and to parents and health care workers, which complements more formal government regulations. CCA is actively involved in upholding responsible advertising practices in Canada. One PSA called “Tell Someone” focuses on Bullying Prevention and delivers the message that the best defence against bullying is enlisting the help of a trusted adult. 2. Go to couponsaver.com (www.couponsurfer.com) and identify five of the products featured. How effective are coupons for selling these products? Why? What are the benefits to the seller of using couponsaver.com over other integrated marketing communication options? How do you think couponsaver.com makes money? However, I can provide general insights into the effectiveness of coupons, benefits to sellers, and possible revenue models for coupon websites. Effectiveness of Coupons: Coupons can be highly effective for selling products for several reasons. They incentivize customers to make a purchase by offering a discount, which can prompt impulse buying or encourage repeat purchases. Coupons also create a sense of urgency, as customers may feel compelled to take advantage of a limited-time offer. Moreover, coupons can attract new customers and help retain existing ones by fostering loyalty. Benefits to Sellers: Sellers benefit from using coupons in various ways. Firstly, coupons can stimulate sales and increase revenue, especially during slow periods or when launching new products. They also provide a means to track the effectiveness of marketing campaigns and promotions. Additionally, coupons can help clear out excess inventory, reducing storage costs and preventing losses due to obsolescence. Using Couponsaver.com over other options: Couponsaver.com offers several advantages over other integrated marketing communication options. It provides a targeted platform specifically for promoting discounts and deals, reaching consumers actively seeking savings. Additionally, coupon websites often have a large and engaged user base looking for the best deals, maximizing exposure for sellers. Moreover, Couponsaver.com can offer more flexibility and cost-effectiveness compared to traditional advertising channels like TV or print media. Revenue Model for Couponsaver.com: Coupon websites typically generate revenue through various channels. One common method is through affiliate marketing, where the website earns a commission for each sale generated through the coupons it promotes. They may also charge sellers a fee for featuring their coupons prominently or offering premium placement. Additionally, coupon websites can monetize through advertising, sponsored content, or partnerships with brands and retailers. By providing a platform for both consumers seeking discounts and sellers looking to promote their products, Couponsaver.com can effectively connect buyers and sellers while generating revenue through its business model. Instructor’s Notes: This exercise pushes students to roam around the coupon save website, explore links that interest them, and think about who might use this form of sales promotion. Example answers: Coupons on the home page included Diet Pepsi and Amp Energy Drink, both products that I am interested in buying. Coupons were also available for Cheerios, Yoplait Yogurt and Office Depot products. Since I am on a limited budget, being able to print coupons for products is an incentive to buy them. Sellers can reach a much broader target market using the coupon surfer site and provide a cost effective way to increase brand awareness, site traffic and sales since consumers who visit the site do so with an intention to buy. Coupon Surfer offers private label, co-branding, and partner programs designed to increase traffic to a company’s website and the revenue stream. Companies like American Express, AVON, Dell, General Mills, Kodak, Office Depot, People Magazine, PETsMART, Pfizer, Reebok, Safeway, Staples, Time Inc., and Wal-Mart are listed as clients and pay to use the service as well as likely buy reports since Coupon Surfer tracks and monitors consumer response by geographic or demographic data, which would be valuable information for these companies. End-of-Chapter Case Jigsaw: A Menace to Your Phone Questions: 1. How effective do you think Lions Gate’s advertising through nontraditional media channels has been for its films? Lion’s Gate advertises through untraditional media channel to reach its target market in a variety of ways. The target includes young men and the company capitalized on this by creating ads that in and of themselves were entertainment and partners with carriers of live television on cell phones such as MobiTV to offer live TV on the cell phones which its target market gravitates towards. It also used comedians to mention the movie in their stand up routines and ketches as well as MySpace. The movies target market uses these venues and Lion’s Gate developed an IMC campaign to capitalize on its market through these venues. The Saw III DVD became the top-selling and top-rented release of the week and the DVDs of the first two films in the top 20. The untraditional media channels are a success. 2. The Saw movies tend to appeal mostly to younger, male viewers. Therefore, is Lions Gate’s strategy a long- or a short-term strategy? Why? Lion’s Gate is a short term strategy to increase the buzz marketing of Saw III to their target market. The company matched the target market characteristics of people that like Saw III and tapped into unconventional channels that this target market uses. As the target market characteristics change, so will the marketing outlets that Lion’s Gate uses to reach them. 3. Identify and link the various advertising and promotion tactics used by Lions Gate to the AIDA model described in this chapter. How effective do you think these tactics are to its success? The film’s producers create value for their target market by linking the movie to other events such as the partnering up with Warcon Records to produce a Saw III-themed music show in support of both the film and its soundtrack. They also support a “Circle of Blood” fan club. Video Activities Video: Ford: Social Advertising Learning Objective: LO1 Advertising Objectives Page Number in Text: 495 Description: Ford's objective was to create awareness of the Fiesta through informative advertising. It used social media and the internet to get its message to consumers and have them submit videos of their experience with the Fiesta. Key Words: non-traditional marketing, social media, informative advertising Activity: Have students create a list of recent social media campaigns that invited consumers to submit videos. Ask them to discuss what incentives the companies used to convince consumers to do this task, e.g. valuable prizes, a percentage of product sales for a year (Dorito’s Guru Contest), recognition, etc. Ask how many students have created videos and participated in social media campaigns. How did the experience of creating a video change their attitude toward the brand? Did they spread word of mouth about the brand to their friends via Facebook, Twitter and other social media platforms? Students may come up with various recent social media campaigns that have invited consumers to submit videos. Some examples could include: 1. Coca-Cola's "Share a Coke" campaign, where consumers were encouraged to share videos of themselves finding their name or a friend's name on a Coca-Cola bottle. 2. GoPro's "Photo of the Day" campaign, where users submit videos of their extreme sports adventures captured with a GoPro camera for a chance to be featured on the company's website and social media channels. 3. Airbnb's "Live There" campaign, where users were invited to share videos of their travel experiences staying in Airbnb accommodations. 4. Starbucks' "White Cup Contest," where consumers were asked to decorate their Starbucks cup and submit a photo or video of their design for a chance to win prizes. Companies often use various incentives to convince consumers to participate in these campaigns, such as: • Valuable prizes: Offering cash prizes, product giveaways, or exclusive experiences can motivate consumers to create and submit videos. • Recognition: Providing recognition by featuring the best submissions on the company's website, social media channels, or in advertising materials can incentivize participation. • Unique experiences: Offering consumers the chance to be part of something special or exclusive, such as being featured in a commercial or attending a VIP event, can encourage participation. • Social validation: Leveraging the desire for social validation by showcasing user-generated content can motivate consumers to participate and share their experiences with their social networks. Regarding personal experiences, some students may have participated in creating videos for social media campaigns. Their attitudes toward the brand may have been positively influenced by the experience of being involved in the campaign and seeing their content shared by the company. Creating a video for a brand can create a sense of ownership and connection to the brand, leading to increased brand loyalty and advocacy. Additionally, students may have shared their experiences and the brand's message with their friends and followers on social media platforms like Facebook, Twitter, and Instagram, thus contributing to word-of-mouth marketing for the brand. This organic sharing can amplify the reach of the campaign and generate further interest and engagement from consumers. Solution Manual for Marketing Dhruv Grewal, Michael Levy, Shirley Lichti, Ajax Persaud 9780071320382, 9780070984929
